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2022 (8) TMI 1351 - ITAT MUMBAIRevision u/s 263 - As per CIT assessee has deposited cash into its bank account during demonetization period but AO has not properly examined this issue - HELD THAT:- AO has called for various details during the course of assessment proceedings with regard to the cash deposits made during the demonetization period through various notices issued both u/s 131 of the Act and u/s 142(1) - AO has called for various details such as, copies of cash book, bank book, stock details, purchases details, sales details, Explanations for increase in cash deposits, comparison of sales of the current year with past year etc. A.R took us to the replies given by the assessee to the AO to the various queries raised by him. Thus, we notice that the AO has examined the issue of cash deposits from various angles and hence his enquiries or verifications, in our view, cannot be considered to be inadequate or not up to the required standard. Accordingly, we are of the view that the clause (a) to Explanation-2 to sec. 263 shall not apply to the facts of the present case. There is no dispute with regard to the fact that the impugned cash deposits have been made out of cash balance available in the books of accounts. The said cash balance has been accumulated out of past cash balance and sales made by the assessee. The quantity details of purchases and sales have been accepted and hence sales made by the assessee cannot be doubted with. We also notice that the said books of accounts have not been rejected. Under these set of facts, the sources of cash deposits would get stand explained by the books of accounts itself. Hence the AO has taken the view that no addition in respect of cash deposits is warranted in the facts and circumstances of the case. Hence the view so taken by the AO is a possible view in this matter. PCIT has expressed the view that the AO has neither made any addition nor has applied his mind, meaning thereby, it is the view of the Learned PCIT that the AO should have made addition to the total income in respect of cash deposits. In our opinion, the view so entertained by learned PCIT cannot be the basis for initiating revision proceedings. - Decided in favour of assessee.
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